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January 29, 2023
candles

An Audit Associate at KPMG’s NYC Office Has Died

I debated even posting this at all but everyone is already talking about it and maybe it will encourage someone reading it to get help if they too are struggling. On Thursday, a recently-hired audit associate working out of KPMG’s New York City office at 345 Park Avenue committed suicide. There appears to be just […]

cat in a fishbowl with money

Friday Footnotes: Higher Salaries Lead to Higher Fees; EY Auditors Quit; Senator Rags on Greedy Accounting Firms | 1.27.23

Big 4 EY auditors escape potential Wirecard sanctions after leaving profession [Financial Times] Germany’s audit watchdog closed investigations against four current and former EY auditors involved in inspecting collapsed payments firm Wirecard after they handed back their professional licences and left the profession earlier this month. Under German law, Apas can only probe and sanction […]

closeup of racetrack finish line

If This Person Can Pass the CPA Exam, So Can You

I was cleaning out pics on my phone and was reminded of something I saw on Reddit a few weeks back: a screenshot of someone’s many, many, MANY CPA exam attempts over twelve years. Most people would have given up around the tenth attempt but this person persisted. And persisted. And persisted. So if you […]

Do Ex-Big 4 Accountants Make Good NFL Team CEOs?

Last week the Chicago Bears introduced Kevin Warren, most recently commissioner of the Big Ten Conference who also has 21 years of experience as an NFL team executive, as the franchise’s fifth president and CEO in its 103-year history. Warren succeeds Ted Phillips who is retiring after 40 seasons with the Bears, including the last […]

Overcoming the Five Stages of Lease Accounting Grief

When Thomson Reuters reported late last year that the Financial Accounting Standards Board (FASB) had proposed an eighth round of changes to lease accounting rules1, accounting and finance execs around the country channeled their inner Charlie Browns with a collective, “Good grief!” The grief is understandable, although we’re not sure how “good” it is. The […]

kids pretending to work in an office

RSM Does Not Aspire to Be KPMG

RSM International CEO Jean Stephens spoke to Financial Times recently and let everyone know that her firm is totally open to a little wheeling and dealing that would bump them up from their current spot as the sixth largest firm (#5 on the IPA 500). Coincidentally, RSM just released their revenue numbers and they are […]

a cat studying in a library

The 259th Largest Accounting Firm Is Paying For Unlicensed Staff to Pursue a Master’s at the 87th Best Online Business School

Tiny little Southfield, MI firm Clayton & McKervey won’t be making Vault prestige lists any time soon but it is doing something to support its people through the process of getting the necessary 150 units for licensure: offering scholarships. Ranked #259 on the INSIDE Public Accounting Top 500 with revenue of $16,392,083, Clayton & McKervey […]

smushed face cat and alarm clock

Monday Morning Accounting News Brief: PwC Partner Banned; Salary Predictions; Public Accountants Have Had It | 1.23.23

Last week someone complained about the format I’ve been using for this linkwrap since I started doing it many, many Mondays ago so just for them, here’s some bullet-free bullet points in lieu of one giant paragraph. Don’t say I never did anything for you. Brazilian retailer and PwC client Americanas filed for bankruptcy, its […]

a Bengal cat in front of laptop

Friday Footnotes: EY Can’t Hire Tech; John Doe Sues the PCAOB; Auditors Can’t Find Torpedoes and Missiles | 1.20.03

Practice Management How firms use stay interviews to boost retention [Journal of Accountancy] Job interviews have long been an essential part of the hiring process. But now, some public accounting firms are turning the lens on themselves. They’re conducting “stay” or “retention” interviews with existing employees. The goal is to understand how they can be […]

image representing tax law

Fourteen People Who Inspired Future Tax Criminals in 2022

The IRS Criminal Investigation unit has released its top cases for 2022 and in it we get reality TV personalities, a rogue tax preparer, some garden variety PPP fraud, and even a former decathlete with his own Wikipedia page. Pretty sure some of these people showed up in Accountants Behaving Badly, an irregular feature we […]

tired dog under blankets

Monday Morning Accounting News Brief: KPMG Vet Quits on Christmas; PwC Resigns; ‘A Veil of Legitimacy’ | 1.16.23

An accountant used his position in the accounting department of the Volunteer Energy Cooperative (VEC) in Tennessee to steal nearly a million dollars, he used a refund scheme to transfer money into his personal checking account and make payments to his credit cards and his wife’s credit cards. A discussion about money laundering in Australia: […]

Friday Footnotes: PwC in Trouble?; A Backwards Accountant; Audit Committee Musical Chairs | 1.13.23

Big 4 Isio Group inks deal to acquire Deloitte’s U.K. retirement advisory business [Pensions & Investments] Consultant Isio Group agreed to acquire Deloitte Total Reward and Benefits, the U.K. pensions advisory business of Deloitte, a spokesman confirmed Wednesday. Terms of the deal were not disclosed. The transaction, which is subject to regulatory approvals from the […]

Deloitte "if you just follow, you'll never lead" sheep billboard

Deloitte US Picked a New CEO and Chair, Sent Out an Email

How many times can we reuse this stupid Deloitte billboard picture? Deloitte US announced this morning that Jason Girzadas has been selected as chief executive officer and Lara Abrash has been selected as the chair of the board, beginning June 4, 2023, subject to a partner ratification vote. Jason succeeds outgoing CEO Joe Ucuzoglu who […]

lame stock photo of a hacker

PSA: Change Your AICPA Password NOW (UPDATE)

Who penetrates networks in the dark with a hood over their head? Silly. h/t @cbriancpa for tweeting this story out Hackers are claiming they gained access to a database with more than 140,000 emails and passwords from the AICPA according to Cybernews, the only outlet reporting on this as yet. We have reached out to […]

businessman getting laid off

Guidehouse Laid Off a Bunch of Old Grant Thornton Partners After the Public Advisory Practice Merger (UPDATE)

Ed. note: a previous version of this article included “Rumor” in the headline. As it is considered confirmed, we’ve removed it. Update at the bottom. Back in August when it was announced that Guidehouse would be buying Grant Thornton’s public sector advisory practice, we wondered out loud if layoffs might be expected as they so […]

Monday Morning Accounting News Brief: EY Wants to Buy; Losers Dump NFTs For Tax Purposes; CPA Demand in 2031 | 1.9.23

Deloitte announced today that Anna Taylor — former tax and economic policy principal advisor to Senate Majority Leader Chuck Schumer (D-N.Y.) — has joined Deloitte’s Washington National Tax practice as the deputy managing principal of the Tax Policy Group. KPMG chief economist Brendan Rynne said the key emerging obstacle that the firm found in its […]

No One Cares But Here Are PwC’s 2023 Metaverse Predictions Anyway

What’s next for the metaverse and what — if anything — should you do about it? PwC has answered the question no one is really asking in its 2023 metaverse predictions. These predictions are, as you’d expect, dumb made assuming that businesses and consumers alike will begin using the metaverse in earnest rather than making […]

"mind the gaap" subway markings

FASB Took It Easy in 2022

While the PCAOB has been on a mission to scare the pants off of auditors everywhere in the past year with record fines and scary speeches, the Financial Accounting Standards Board took a much more chill approach to 2022. A Thomson Reuters piece published last week informs us that FASB ended the year having issued […]

Now That Six Years of His Tax Returns Are Public, Here Are Four Words That Describe Donald Trump the Businessman

From the Los Angeles Times today: During the years in which Trump battled disclosure, much of the information he sought to keep secret about his pre-presidential finances became public anyway, largely from a 2020 New York Times investigation. The picture that emerged showed that for all Trump’s claims to be a great businessman, his core businesses […]

Grant Thornton and Five Other Firms Got Coal in Their Stockings From the PCAOB

The PCAOB added six audit firms—three international, including a KPMG affiliate, and three in the U.S., including Grant Thornton—to its 2022 naughty list on Dec. 22 for not making required disclosures on Form 3. If a PCAOB-registered accounting firm is a defendant or respondent in an administrative or disciplinary proceeding that was initiated by another […]

old man in a suit in front of a laptop holding a stack of money

Somehow Accounting Ended Up on This List of the Highest-Paying College Majors in 2022

CBS News crunched some Payscale data and by some miracle, accounting ranked #52 on this list of the 60 highest-paying majors. Because we anticipate people might ask for proof of this, we have screenshotted accounting’s entry on said list. Text: Accounting isn’t just accounting anymore. Experts must perform multiple functions at once — and that’s […]

Grant Thornton’s Global Revenue Is On the Up and Up

Grant Thornton is the latest global accounting firm to announce “we made a shitload of money in 2022” when it released last week its revenue results for the most recent financial year: Grant Thornton International Ltd today [Dec. 14] announced its revenues grew to a record USD7.2 billion for the financial year ended 30 September […]

a poorly photoshopped image of EY Global Chair Carmine Di Sibio as a king

Carmine Di Sibio Will Be King of Advisory If EY Splits

It was 1985 when Italian-born Carmine Di Sibio joined EY as an auditor, 34 years later he would ascend to global chairman and CEO, a role he continues to occupy today. Soon, he might end up leading the consulting business should the firm’s 13,000 partners vote for a consulting/audit split in a few months. Although […]

shocked chihuahua

No One Should Be Surprised to Learn FTX Used QuickBooks

Before the House Committee on Financial Services on Tuesday, recently-appointed FTX CEO John J. Ray III gave testimony to back up comments he made to the New York Times last month about FTX being a “complete failure” the likes of which he hadn’t seen in two decades. Back in the day, Ray was chairman of […]

KPMG Pulled In a Kool $34.6 Billion in Global Revenue in FY 2022

Well, well, well, KPMG had a 14% increase in global revenue in its 2022 fiscal year that ended Sept. 30—the second largest year-over-year increase in revenue among the Big 4 firms behind Deloitte’s 18.1%. And of course there’s a press release: KPMG International announces strong annual aggregated revenues for KPMG firms globally of US$35 billion […]

empty wallet

EY Dumbly Nixes Mid-Year Bonuses

On a Friday all-hands call, EYers learned not to expect a bonus from Santa this year. This despite EY having its best year in 20 years. In September, EY announced revenue of $45.4 billion for the fiscal year ended June 30, 2022, an increase of 13.7% from prior year and the most year-over-year growth the […]

a kitten sleeping in a little bed

Monday Morning Accounting News Brief: Living in Mom’s Basement; OnlyFans Tax Investigations; Finance vs. Accounting | 12.12.22

“I don’t care how messy your accounting is … you’re definitely going to notice if you find an extra $8B to spend,” tweeted Coinbase Chief Executive Brian Armstrong about FTX. “​​Even the most gullible person should not believe Sam’s claim that this was an accounting error.” Today we learn that Arkansas is not being hit […]

dogs cuddled in a blanket together

Friday Footnotes: A (Fake) Day in the Life at Deloitte; DYNAMIC Merger For Grant Thornton; CPA Awareness | 12.9.22

News Trump Organization found guilty on all counts of criminal tax fraud [CNN] A Manhattan jury has found two Trump Organization companies guilty on multiple charges of criminal tax fraud and falsifying business records connected to a 15-year scheme to defraud tax authorities by failing to report and pay taxes on compensation for top executives. […]

man peeking at his coworker's laptop

We Forgot to Mention KPMG Got Caught Cheating Again

The PCAOB announced Wednesday it has imposed $7.7 million in penalties against KPMG Colombia (Firm: $4 Million Penalty; Individual: $25,000 Penalty), KPMG UK ($2.6 Million), and KPMG India (Firm: $1 Million Penalty; Individuals: $75,000 Penalty) for a variety of infractions. Failure to cooperate with a PCAOB inspection, cheating on training exams, signing off on blank […]

one million dollars on a calculator

Deloitte Gave a Million Bucks to the New Smithsonian American Women’s History Museum

The Smithsonian American’s Women’s History Museum is still in planning stages and has received a generous donation from Deloitte to support the project. There is of course a press release: The Smithsonian American Women’s History Museum has announced a $1 million gift from Deloitte to support the development of the new museum. The donation establishes […]

illustration of a calculator graduation cap

Yale Grad and Grant Thornton Lawyer Argues The Case For an Undergraduate Accounting Program at Yale

Alexandra Newman (Yale University, B.A. 2005 with Distinction in Philosophy; Northwestern University School of Law, J.D. 2010) has penned an article for Yale Daily News that argues — quite well — why Yale needs an accounting program. Any time the discussion of Ivies and accounting comes up, people who aren’t accounting graduates like to remind […]

Interested in Interest Rates? The IRS Has Something For You

The Fed isn’t the only one raising interest rates these days. The IRS did too—and it has now for four consecutive quarters, including the first quarter of next year. Beginning on Jan. 1, 2023, the rate for overpayments and underpayments will be 7% per year, compounded daily, for individuals, up from 6% in Q4 of […]

AI jr accountant

Here’s What Happens When You Hire AI to Do Accounting

For a good decade we’ve heard about the robots that are going to render accountants obsolete, now we finally get a peek at the glorious technology that will transform the industry as we know it. You should prepare yourself, this advanced technology will have you on the University of Phoenix website ASAP to get a […]

businessman playing with army men toys

PwC Declares a Poaching War on EY

As EY continues to hammer out the details of the audit and consulting split, PwC has set its sights on adding EY partners to The New Equation. Lots of EY partners. In October, PwC Global Chairman and 2012 Going Concern Hottest Accounting Firm Leader winner Bob Moritz told the Financial Times in no uncertain terms […]

a cat cuddled up in a scarf

Monday Morning Accounting News Brief: Gen Z Ruins Accounting; EY Hammers Out Some Deets; Internal Control Controversy | 12.05.22

How is it December already? Not a lot going on this time of year, let’s find some things anyway. Deloitte believes 2023 will be the year of virtual reality. E. Cohen and Company, CPAs of Rockville, Maryland, merged into Marcum effective December 1, adding to Marcum’s presence in the Mid-Atlantic. The PCAOB has been busy […]

dog snuggled in a blanket

Friday Footnotes: Why People Leave Public Accounting; Audit Workloads Up; Terrorist Clients (Literally) | 12.2.22

Slow news week this week. We managed to find some things worth mentioning anyway as we are experts in slow news weeks (698 weeks and counting!), enjoy. Talent Why People Leave Public Accounting [CPA Journal] Writes Edward Mendlowitz, CPA/PFS, ABV: There are many reasons why CPAs decide to leave public accounting firms. Based on my […]

a $100 bill with a mask over Franklin's face

By the Numbers: The Accounting Firms That Received $635 Million in PPP Loans

Remember PPP loans? The Small Business Administration defines PPP as “an SBA-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis.” Remember all the layoffs and pay cuts at accounting firms we were meticulously tracking in early 2020? Transparency group OpenTheBooks.com crunched the numbers using Small Business Administration data and found $635 […]